The Court on Short Marriages

Equal sharing principle:

The court’s equal sharing principle in financial remedy cases was established in the House of Lords two decades ago.

It aimed to eliminate discrimination between the two spouses e.g. the breadwinner and the homemaker.

Judicial discretion is exercised through a ‘yardstick of equality’ to be applied once the relationship generated needs and compensation have been considered.  

Short marriages:

Years later, concerning a short marriage, the House of Lords indicated that there may be some exceptions to the straightforward application. (Of an equal sharing principle that ensures an equal division of the matrimonial assets.)

Much depends on the nature of the way the couple have run their lives. For example: retaining financial independence from one another during the marriage and whether non-family assets were generated by the efforts of one party.

Does the equal sharing principle apply to short ‘childless’ marriages?

The absence of children in a marriage does not impact on the application of the sharing principle. To do so may be discriminatory in its impact on older and same-sex couples.  

This was clarified earlier this year, in a financial remedies case concerning a short marriage.

The sharing principle looks at the value of assets accrued during the marriage, and deeming the contributions to be equal, divides that value equally.

Here, the husband sought to rely on the fact that the marriage was short and childless.

The assets were largely business assets generated solely by the husband during a short marriage.

The outcome after compensation being a division of the assets of 79% to the husband and 21% to the wife.  

What does this case mean for you?

In cases where business or investment assets have been generated over a short period of time, a departure from the equal sharing of assets may be justified.

The rationale underlying the sharing principle is as applicable to business assets as to family assets.

These assets include property that the parties bring into the marriage or acquired by inheritance or gift during the marriage.

The court is expressly required to take into account the duration of the marriage under section 25(2)(d) but there is no statutory definition of a short marriage.

Exceptions:

Dual earners- a marriage of joint contribution with retained financial independence.

Whilst this may appear to be a departure from the equal sharing principle, and an approach that risks being discriminatory, it will be confined to extremely rare situations. A short marriage is still a marriage of equals.

Discover more about marriage and financial settlements

If you or your spouse live in the UK,  and are interested in more information about relationship breakdown, please pick up the phone and call us on 0333 344 6802 or email us on info@blanchardslaw.co.uk for an early response. 

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